Victory Bank Limited B 2 Case Study Solution and Analysis
Intro
Victory Bank Limited B 2 Case Study Help is the biggest publishing business with a highest market share in the China's book retail market. CMP has become a specialized info service provider and a large extensive Science and Technology publishing business through the integration of print media, audio-visual media and the network media.
Important Concerns
Although, Victory Bank Limited B 2 Case Study Analysis has actually spent its 60 years journey efficiently, being a successful publishing house, nevertheless, the altering macro market trends and forces bring specific difficulties to the publishing industry in general and CMP in particular. These elements include;
• Entrance of the brand-new publishing firms in the market.
• Decreasing development of the publishing market.
• Market saturation.
• Introduction of digital publishing techniques
• Improvement of science and technology.
The change of the macro markets have raised numerous questions to the management at CPM that what could be the future of CMP in this scenario? Do the long important experience, technical resources and the abilities of the business could be utilized to pursue the future advancement unceasingly? How could the company sustain its long term competitive position in future?
Situational Analysis
Internal Analysis
SWOT Analysis
Strengths
Victory Bank Limited B 2 Case Study Analysis has specific strengths that can be used to lower the threats, conquer the weak point and get the chances. Strengths of CMP are offered as follows;
• The long term experience of Victory Bank Limited B 2 Case Study Analysis in the publishing industry i.e. 60 years permits the company to supply high quality products at a lower cost utilizing its previous experiences.
• The technical resources and capabilities generated by its successful journey supply a competitive benefit to CMP.
• Large product portfolioof CMP assists it to diversify its danger and offer high worth to its customers.
• Strong monetary position permits the business to consider a number of development chances without any fear of raising fund externally.
Weak points
Together with the strengths, the company has particular weaknesses which might increase restraints for the company in executing its development program. The weaknesses of Victory Bank Limited B 2 Case Study Solution are provided as follows;
• Despite of being a science and technology publishing company, the business still has traditional ways ofpublishing which are not suitable with the growing technological shift.
• CMP highly relies over the Chinese markets for its growth. It should propose particular growth plans to avoid its dependence over the Chinese markets to achieve long term growth.
Opportunities
Although, the growth of the publishing market is decreasing given that 2008, impacting Victory Bank Limited B 2 Case Study Help also, but the growth might be revived by availing specific opportunities provided in the market. The market opportunities for CMP include;
• The business could likewise introduce Digital Publishing by utilizing its long term technical experience and a strong customer recognition in the market.
• CMP might think about a development program through the growth towards foreign markets in order to minimize its dependence over Chinese markets by utilizing its vast funds.
Hazards
The changing macro patterns in the market and increasing competitors in the publishing industry has posed specific hazards to Victory Bank Limited B 2 Case Study Analysis consisting of;( Gurel, 2017).
• Introduction of digital publishing i.e. digital libraries might result in declining market share of Victory Bank Limited B 2 Case Study Analysis due to the customer shift towards digital libraries.
• The existence of a great deal of rivals in the publishing market increase the risk for CMP to lose its competitive position in the market, as competitors can gain a strong customer base by using specific techniques like aggressive promotion, quality items, and so on
• Entrance of new publishing companies in the industry together with presence of high competition increases the danger of losing the client base.
Financial Analysis.
The business has a rather competitive monetary performance. Due to lack of data, the financial ratios of CMP might not be determined. The overall monetary efficiency of the company might be analyzed by using the charts given in the case Appendices. It could be evaluated from the Appendix III that the annual total incomes of CMP throughout the period 2000-2012 are growing at a high development rate, revealing that the yearly demand of the products of Victory Bank Limited B 2 Case Study Help is growing and the business is quite effective in bring in a large number of clients at a prospective rate.
Along with it, the second graph which reveals the annual growth in the Victory Bank Limited B 2 Case Study Analysis total properties, reveals that the business is rather efficient in including value to its assets through its incomes. The development in possessions reveals that the total value of the company is also increasing with increasing the overall earnings. (Unknown, 2013).
Another financial analysis of the business using the provided data could be the analysis relating to the distribution of total revenues of the business. Huge part of the profits of CMP comes from the sales of its published books i.e. 64% as shown in the Case Appendix V. The company could move towards other company sections with a prospective development to attain its future advancement goal.
PESTEL Analysis
PESTEL analysis might be conducted to discover the various external forces affecting the efficiency of the company and the current patterns in the external environment of the company. A short PESTEL analysis of the company is given as follows; (Alanzi, 2018).
Political.
As the publishing sector could have a significant impact on the state of mind of individuals about the communist ideology of the federal government, for that reason, the publishing sector is highly monitored and assisted by the Publicity Department of the Communist Celebration of China. It could be stated that the general political forces affecting CMP service are high. The government policies relating to the publishing sector are likewise increasing with the passage of time.
Cost-effective.
Financial forces affecting the publishing sector in basic and the Victory Bank Limited B 2 Case Study Analysis in particular includesthe prices of paper, the earnings level of customers, the inflation rate, and the overall GDP development of the country. All these forces combine effect the need for the publishing market. Along with it, the economic policies connected to the import of books affect the overall business at CPM. Nevertheless, China's economic conditions are rather beneficial for CMP with high GDP development and customer earnings level.
Social and Demographical.
The customer preferences are shifting towards digital publishing rather than the conventional was of publishing. In this regard, CMP needs to focus on digital publishing to satisfy the changing consumer preferences.
Technological.
Technological forces affecting the CMP consist of the technological development in the reading methods and so on. Improvement of science and technology together with the increase of digital publishing could reduce the demand for the CMP items, if specific actions would not be taken soon.
Environmental.
Ecological forces affecting Victory Bank Limited B 2 Case Study Solution consists of the issues of environmental communities over the usage of paper in publishing books. The paper used in the books while publishing is required to be non reusable and the ink used while publishing must not be hazardous for the environment.
Legal.
Legal regulations for the publishing sector at whole are high. The legal guidelines regarding the publishing sector is managed by the General Administration of Press and Publication. Publishing Ordinance 1997 needs the publishers to be approved initially by the Federal government to be gone into in the publishing market. The ordinance forbids direct participation of foreign entities and individuals in the publishing sector.
Industry Analysis (Porter's Five Forces Model).
Porter's Five Forces Design might be utilized to examine the appearance of the publishing industry China. A quick analysis of the Porter's Five Forces is given as follows;.
Danger of New Entrants.
Dangers of new entrants in the Chinese Publishing Market is moderate. The potential growth in the industry tends to draw in brand-new entrants to the publishing market. The presence of intense competition and the requirement of big capital tends to demotivate brand-new entrants to enter in the market.
Threat of Alternative.
Danger of Replacement is high for the Chinese Publishing Industry. The replacement products for the published files is the documents provided in the digital libraries on particular sites. The altering consumer preferences towards digital knowing increase the danger of alternative for the industry.
Competitive Competition.
Competitive rivalry in the publishing market is high. The existence of a great deal of customers in the Chinese Publishing Market like CIP, PTP etc. tends to produce high competitive rivalry for CMP. In addition to it, new entrants are likewise participating in the marketplace increasing the competition for CMP.
Bargaining Power of Supplier.
The significant providers of the Victory Bank Limited B 2 Case Study Solution consist of the providers of the paper for publishing files. As CMP is the largest publisher in the Chinese Publishing Market, therefore the general bargaining power of supplier for CMP is low.
Bargaining Power of Purchaser.
Negotiating power of purchaser in the publishing industry is high. Due to the presence of a large number of publishers in the Chinese market and the marketplace saturation, the buyers requires high quality files at competitive costs.
Competitors Analysis.
CMP runs in a highly competitive industry with the existence of a great deal of competitors. The company has a competitive position in the market with the highest market share in the Chinese publishing market. Major competitors of Victory Bank Limited B 2 Case Study Help include;.
• Chemical Industry Press (CIP).
• Posts and telecommunication Press (PTP).
Chemical Market Press (CIP).
CIPis one of the close competitors of CMP. Founded in the exact same duration, CIP releases comparable type of books. For a large time period, CIP held the largest market share, and still ranks 2nd and third in various market sectors, with a major concentrate on instructional publications. CIP functions as a threat for CMP as it might wean its market share due to its long term competitive background. CIP is concentrated on digital publishing and might wean the marketplace share of Victory Bank Limited B 2 Case Study Analysis easily in the existing market scenario.
Posts and telecommunication Press (PTP).
Another close competitor of CMP is PTP. It was also founded in the very same period as CMP and CIP. It ranks sixth in the state-owned publishers in regards to business scale. It is also one of the popular gamers in the publishing industry with an annual overall incomes of RMB 550 million in 2010.
Alternatives
Alternative-1: Broaden towards New Markets
Pros
• Lowering dependence over the Chinese markets.
• Increasing variety of Customers
• Growth opportunities.
• Avoiding the impact of market saturation in the Chinese publishing market.
Cons
• Use of potential resources in expansion.
• Risk of failure in brand-new markets.
• Time consuming.
Alernative-2: Present Digital Publishing
Pros
• Sustaining consumer base.
• Approaching brand-new markets.
• Easy to present using existing capabilities.
• Low danger of Failure.
• Low requirement for funds.
• Increased product portfolio supplies high value to consumers.
Cons
• Competition in the market by CIP, who has prior concentrate on the digital publishing.
• Shift of focus from the core service sections to the brand-new one can lead the company to lose demand of its products in the market.
Recommendations
With the deep analysis of the external and internal environment of the company in addition to the market analysis and the rival analysis, Alternative 2 is suggested to CMP to attain its future advancement. As the choices are moving towards digital publishing and the business require an instant solution to prevent the decreasing industry development. Intro of digital publishing could show to be an immediate service with low quantity of danger for the business. Nevertheless, the company might also think about the growth program after the success of its digital publishing program.
Execution
In order to present digital publishing in its product portfolio, the business must first collects the information related to the consumer demand, the potential markets, the government regulations and the information related to the rivals presented in the market. If the preliminary offering shows a success, the company should go for the other markets. In this way the company would be able to execute its digital publishing program.
Conclusion
The development of the publishing industry is decreasing given that 2008, showing a threat to the company's long term existence, but the situation can be controlled by considering a development strategy in the future. The company could consider presenting digital publishingin its existing market to execute its development program at instant basis and to prevent the risk of failure for entryway in the new markets.
